Monster Beverage Tops Q4 Estimates but Shares Slip on Rising Costs

Core Insights - Monster Beverage Corporation reported fourth-quarter results that exceeded Wall Street expectations, but shares declined over 2% in premarket trading due to rising operating expenses [1] Financial Performance - The company posted adjusted earnings per share of $0.51 for the quarter ended December 31, 2025, beating the consensus estimate of $0.48 by $0.03 [2] - Revenue rose 17.6% to $2.13 billion, surpassing the $2.04 billion estimate and marking the first time the company exceeded $2.0 billion in a fiscal fourth quarter, compared to $1.81 billion in the prior-year period [2] - Adjusted operating expenses increased 21.4% to $561.6 million, outpacing revenue growth, with operating expenses as a percentage of adjusted net sales excluding alcohol rising to 26.7% from 26.0% a year earlier [3] - Adjusted operating income increased 16.0% year over year to $617.6 million [3] - International sales climbed 26.9% to $903.3 million, compared with $711.5 million in the prior-year quarter [3] - The Monster Energy Drinks segment posted 18.9% sales growth to $1.99 billion [3] Profitability Metrics - Gross profit margin improved slightly to 55.5% from 55.3%, supported by pricing actions and supply chain efficiencies, partially offset by higher aluminum can costs [4] - Net income surged 65.9% to $449.2 million, or $0.46 per diluted share, compared with $270.7 million, or $0.28 per share, a year earlier [4] - On an adjusted basis, net income rose 31.2% to $507.0 million [4] Annual Performance - For full-year 2025, Monster reported revenue of $8.29 billion, up 10.7% from $7.49 billion in 2024 [4]